Wednesday, September 1, 2010

Rex (Nasdaq:REXX) Selling Some Marcellus Assets to Sumitomo

Rex Energy Corp (Nasdaq:REXX) announced it is selling some of its acreage in the Marcellus shale to Sumitomo Corp. of Japan.

Shares of the energy company soared on the news, finishing Tuesday's trading session at $11.31, gaining $1.05, or 10.23 percent.

Terms of the deal are $140.4 million, with $88.4 million in cash at the close of the deal, and another $52 million in the form of a drilling carry.

The assets sold include 12,900 acres in the Marcellus Shale in Pennsylvania, a number of shale wells already in production, and other mid-stream assets.

Concerns have also been allayed over the shortfall of its capital expenditures, which now stands at $130.7 million.

No comments: